58 The Economics of Dead Zones: Causes, Impacts, Policy Challenges, and a Model of the Gulf of Mexico Hypoxic Zone S. S. Rabotyagov*, C. L. Klingy, P. W. Gassmanz, N. N. Rabalais§ ô and R. E. Turner Downloaded from Introduction The BP Deepwater Horizon oil spill in the Gulf of Mexico in 2010 increased public awareness and http://reep.oxfordjournals.org/ concern about long-term damage to ecosystems, and casual readers of the news headlines may have concluded that the spill and its aftermath represented the most significant and enduring environmental threat to the region. However, the region faces other equally challenging threats including the large seasonal hypoxic, or “dead,” zone that occurs annually off the coast of Louisiana and Texas. Even more concerning is the fact that such dead zones have been appearing worldwide at proliferating rates (Conley et al. 2011; Diaz and Rosenberg 2008). Nutrient over- enrichment is the main cause of these dead zones, and nutrient-fed hypoxia is now widely at Iowa State University on January 27, 2014 considered an important threat to the health of aquatic ecosystems (Doney 2010). The rather alarming term dead zone is surprisingly appropriate: hypoxic regions exhibit oxygen levels that are too low to support many aquatic organisms including commercially desirable species. While some dead zones are naturally occurring, their number, size, and *School of Environmental and Forest Sciences, University of Washington, Seattle, Washington, USA; e-mail:
[email protected] yCenter for Agricultural and Rural Development,